Rosenblatt Raises Micron Price Target to $600

Rosenblatt analyst Hans Mosesmann raised the price target on Micron Technology (NASDAQ: MU) to $600.00 while maintaining a Buy rating.

“Micron delivered another quarter of stunning results and guide as its DRAM and NAND average selling prices (ASPs) increased ~65% and ~77% sequentially, respectively.

Guidance suggests more ASP increases to come.

Demand is expected to continue outstripping supply through CY26 and into CY27 as bit supply growth is limited to ~20% in CY26 based on process node transitions.

New DRAM wafer capacity expectations remain at mid-2027, with new NAND wafers due out in late CY28. Management has introduced Strategic Customer Agreements (SCA).

While light on the details, SCAs have longer time horizons and mutual commitments from both Micron and their customers.

This is different the past Long-term Agreements (LTA) attempted during past supply shortages. Management announced signing one 5-year SCA.

Multiple customer SCAs are in negotiations across multiple end markets. For the stability of the memory/storage industry, we would be encouraged to see SCAs work for both parties.

History of boom/bust cycles has us cautious has the launch of new wafer supply approaches.

Despite our cautious view having the rate of ASP increases slowing sequentially and possibly turning negative as wafer supply comes online, our Y/Y estimates increase significantly due to the much higher base of 3QF26 guidance.

We are increasing our 12-month price target to $600 based on what we expect will be a cyclical trough multiple of 6x forward earnings.”

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